North America
Following in the footsteps of the ethanol industry, biodiesel is poised for substantial growth in the next few years. Government incentives and mandates do away with pricing barriers that have limited the growth of the biodiesel industry to date.
Biodiesel production is quickly developing in the U.S. Capacity increases are mainly due to strong support for renewable, domestic energy and environmental concerns. Strong government support allows new biodiesel projects to qualify for and receive a variety of public funds similar to those already enjoyed by the ethanol industry. While many state and federal incentives and mandates have already been passed, additional legislation is being proposed which, when approved, will create significant new opportunities for the biodiesel industry in the U.S. market.
Canada’s commitment to clean energy was recently enhanced with its signing of the Kyoto Protocol. The federal excise-tax on biodiesel fuel has been completely eliminated while provincial governments throughout the country have or are in the process of further reducing or eliminating their fuel tax. These steps now make biodiesel cost-competitive with petroleum throughout Canada.
“These are fuels that can be renewed year after year, and fuels that can expand our farm economy. These fuels are made right here in America, so they can’t be threatened by any foreign power. Since the beginning of my administration, I have strongly supported …biofuels.”
– U.S. President, George W. Bush |
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Europe
Europe, by far, has the most significant biodiesel production in the world. The ten-year-old industry has rapidly grown to an annual capacity of over 600 million gallons.* Sharp increases in biological fuel use have been boosted through government incentives. By eliminating some or all of the federal excise-tax, many countries have allowed renewable fuel to be priced competitively with petroleum.
Germany has the largest biodiesel capacity in Europe, followed closely by France and Italy. In the last six years alone, Germany has increased its capacity tenfold.** Commercial biodiesel production is now emerging in: Spain, Austria, Denmark, Sweden, the Czech Republic, Poland, and the United Kingdom.
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